Financial Times FT.com

Currency factor stalls Honda plant

By Chris Giles and Tim Harford in Tokyo

Published: May 23 2007 22:08 | Last updated: May 23 2007 22:08

Honda’s Swindon car plant will not receive another big investment because Britain’s refusal to join the euro has created too much currency uncertainty, Takeo Fukui, president of the Japanese car group, told the Financial Times.

The company would not expand the capacity of the plant until currency risk was eliminated, Mr Fukui said. But he said Honda had no plans to write off its existing investment and shut the UK plant, which supplies the European market.

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